Last week I posted my humble beginnings as a trader. This will be my way of showing what happens right or wrong.
Powerwave Technologies: $PWAV is currently at $3.46. I purchased 7 more shares at $3.43 on the 26th of January 2011. This makes my shares and average of $3.55 in cost for 14 shares. If we factor in the two trades at $4.5 each with a total of $9.00 in commission my total value is at a $-10.26 gain. Ouch! Remember the first goal is to have the trade pay for itself. Since the current value is $3.46 I have in effect reduced my investment. I am still confident in my choice so I have a mental sell should the value drop further: I will sell if it reaches 3.18 or 3.20.
With a little kind help I have gathered some input on my trade: The ArmoTrader has charted $PWAV on Stocktwits' Chart.ly. I also have checked into another trader: TheConfidentInvestor who has given this stock a "poor" rating. His position is clear: He is not confident that this stock is a good place for your money. It is speculative.
For a small investor who is looking to make money you need to speculate in order to increase the value of your money. I imagine that I am a little VC (Venture Capitalist). I want to make my money work for me so I go after businesses that I think are interesting. This also means that I do not know the end result. I can guess.
Oracle Corporation: $ORCL is current at $32.00 I purchased my one skinner lowly share at $30.85. I am still up, but we have to factor in the trade commission of $4.5 so I am at a $ -3.55 gain. Here I am feeling a bit better because Oracle is a strong company. I do have a sell number if this takes a turn for the worst. My stop is $27.00.
Again I have obtained some input from TheArmoTrader: his chart regarding $ORCL. It's great to have feedback for your investments. If you don't share your position then you can not learn anything. This information is not TheArmoTrader's absolute gospel, but it is his share of experience and erudition. By discussing and sharing we can overcome the massive obstacle known as self.
- Every trade pays for the cost of the trade and sell!
- I make $200 in profit and I subtract 1/4 to reduce it to $150. The balance goes into a static savings.
- I make with my $150 up to $400 and I subtract 1/4 to reduce it to $300. The balance goes into a static savings.
- I make with my $300 up to $600 and I subtract 1/4 to reduce it to $400. The balance goes into a static savings.
- I make with my $400 up to $800 and I subtract 1/4 to reduce it to $600. The balance goes into a static savings where it has now the value of $1500.
- I make with my $600 up to $1200 and I subtract 1/4 to reduce to $900. The balance goes into a static savings.
- I hit the $1000 mark with my trades and I now allow the trades to pay for themselves.
- Every week I take from regular earnings $20 to $30 to seed my investments. This positive cash flow will be sufficient until I reach $1000 after my last subtraction.
You get the picture. Have worked now full-time since 1987 that's 24 years. 24(years)*52(weeks)=1248(weeks) 1248(weeks)*$20=$24,960 That's a lot of money! I wish I could say that that is all I have wasted on crap I did not need, but I am sure that $24,960 is a remote figure to the real waste. I was basically a conduit for money. I moved money from one spot to another and I worked hard doing it.
Thank you for your eyeballs and have a great week. Till next time. Remember this: Never let someone else's experience limit your ability.